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Shopping without pain: Compulsive buying and the effects of credit card availability in Europe and the Far East

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  • Lo, Hui-Yi
  • Harvey, Nigel

Abstract

The financial consequences of compulsive buying are obvious given the large amount of debt reported by compulsive buyers in many studies. Credit cards allow consumers to borrow money very easily in order to satisfy their desire to purchase. In two web-based experiments, we found that compulsive shoppers often overspent and were rarely influenced by price. Their overspending was partially mediated by their excessive use of credit cards. Furthermore, compulsive shoppers were less conscious of their budgets, especially when they used credit cards. They also obtained more pleasure from accomplishing a shopping trip and were more distressed by delayed product delivery than normal shoppers. Finally, compulsive shoppers in Taiwan were more compulsive than those in the United Kingdom: they displayed many of the above symptoms of compulsive buying more saliently.

Suggested Citation

  • Lo, Hui-Yi & Harvey, Nigel, 2011. "Shopping without pain: Compulsive buying and the effects of credit card availability in Europe and the Far East," Journal of Economic Psychology, Elsevier, vol. 32(1), pages 79-92, February.
  • Handle: RePEc:eee:joepsy:v:32:y:2011:i:1:p:79-92
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    References listed on IDEAS

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    Cited by:

    1. Amit Poddar & Cameron Ellis & Timucin Ozcan, 2015. "Imperfect Recall: The Impact of Composite Spending Information Disclosure on Credit Card Spending," Journal of Consumer Policy, Springer, vol. 38(1), pages 93-104, March.
    2. Mittal, Banwari, 2015. "Self-concept clarity: Exploring its role in consumer behavior," Journal of Economic Psychology, Elsevier, vol. 46(C), pages 98-110.
    3. Donnelly, Grant & Ksendzova, Masha & Howell, Ryan T., 2013. "Sadness, identity, and plastic in over-shopping: The interplay of materialism, poor credit management, and emotional buying motives in predicting compulsive buying," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 113-125.
    4. Basnet, Hem C. & Donou-Adonsou, Ficawoyi, 2016. "Internet, consumer spending, and credit card balance: Evidence from US consumers," Review of Financial Economics, Elsevier, vol. 30(C), pages 11-22.
    5. Atte Oksanen & Mikko Aaltonen & Kati Rantala, 2015. "Social Determinants of Debt Problems in a Nordic Welfare State: a Finnish Register-Based Study," Journal of Consumer Policy, Springer, vol. 38(3), pages 229-246, September.
    6. Pham, Thi H. & Yap, Keong & Dowling, Nicki A., 2012. "The impact of financial management practices and financial attitudes on the relationship between materialism and compulsive buying," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 461-470.

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    Keywords

    Compulsive buying Credit card usage;

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